Hong Kong hotel industry has capacity to continue to grow despite economic uncertainty and manpower shortage
- The Hong Kong Hotels Association says 2018 was a record year for the sector, largely driven by visitors from mainland China
- The opening of several hotels is expected to offset the loss of the Excelsior in Causeway Bay, which closes at the end of the month
Supply of hotel beds in Hong Kong will grow by 3 per cent annually in the next three years despite the imminent shutdown of the high-end Excelsior hotel and uncertainty surrounding the city’s tourism sector, according to the Hong Kong Hotels Association.
The industry body said on Friday that 2018 was a record year for the hotel and hospitality sector, while room rates grew by 9 per cent to an average of HK$1,310 per night and occupancy hit 92.05 per cent, compared with 90.74 per cent in 2017.
The supply of beds in the city will be boosted by the opening of new hotels such as the 413-room Rosewood Hong Kong in Tsim Sha Tsui last week. The 618-room Alva Hotel by Royal in Sha Tin and 287-suite K11 ARTUS in Tsim Sha Tsui are also set to open in the second half of 2019, according to the association. This will offset the loss of the 869 rooms of the Excelsior hotel in Causeway Bay, which will close its doors for good on Sunday to make way for commercial redevelopment.
According to Rebecca Kwan Shuk-wah, chairwoman of the Hong Kong Hotels Association, the growth in these figures was driven by a rise in tourist arrivals to the city.
“The increase in tourists was caused by the opening of new infrastructure projects, such as the Hong Kong-Zhuhai-Macau-Bridge and high-speed rail link,” said Kwan.